• Benjamin Elliott

Finance Reporting Automation: Seven Key Benefits

Updated: Oct 17



Finance Reporting Automation: Seven Key Benefits

The need for instant financial insight has increased exponentially. This is mainly due to the surge in nifty reporting tools available today that can streamline processes and create efficiencies you didn't even know you needed.


One such tool is finance reporting automation. Implementing this as part of your financial strategy can be one of the biggest lifesavers for your business. It can create reports encompassing all required disclosures, increase general report accuracy and create full transparency in all your financial systems.


If you run a small business and have limited time and resources to handle your financial tasks, automation is a game-changing solution.


In this guide, we’ll explain what financial reporting automation is and how it can benefit your business.




What Is Finance Reporting Automation?

Finance reporting automation is the term used to describe the software that curates the process of generating/automating all financial reports.


Finance automation tools can be used to execute accounts payable processes, account reconciliation, perform time-consuming data entry tasks, and prepare financial reports and statements. By automating this process, the software reduces the risk of human error while saving your team loads of time.


Using a financial reporting automation tool can help you avoid the need to dig through paper trails and multiple accounting systems. Instead, the software will pull data from all of your systems and use this data to generate extensive reports.


7 Key Benefits Of Finance Reporting Automation

Does using finance reporting automation seem a little ‘out of your comfort zone’? Here are some of the main benefits of adopting this software for your finance team.


1. Data Configuration

Essentially, financial reporting takes a minefield of data and turns it into structured information that you can maximise and use to make informed business decisions.


2. Improves Efficiency

First and foremost, using a finance reporting automation tool vastly improves your overall financial efficiency. As mentioned above, instead of having to sift through data stored on different systems and paper trails, the software will automatically pull all of the relevant data for you.


This is done in a matter of minutes, saving loads of valuable time. Not only this, but you can ensure that all of the right information is pulled.


Beyond accessing data, finance reporting automation tools will also take care of time-consuming data-entry tasks. This is one of the biggest areas of inefficiencies for finance teams, and it can be completely streamlined with the right software solution.


3. Reduction in Fraud

The risk of fraud in business is no secret. But with the use of a proper automation platform, your business is covered from potential fraudulent activity. This is because your software won’t try to cheat the system. Any inaccuracies or errors will be made clearly visible, and you will be notified immediately.


4. Improves Data Accuracy

Regardless of how well qualified and experienced the members of your finance team may be, there is always the risk of human error when it comes to manual data entry or any task that involves human input. By utilising finance reporting automation, however, you greatly reduce this risk.


This means more accurate finance reports to help your business operate more efficiently.


Having an accurate system in place also has a positive knock-on effect on other business processes like audit reports and monthly reconciliations.


5. Assists With Audit Trails

Everything that happens within your finance reporting automation software is stored in one central place. This means that whenever finance processes are carried out, you can always check up on these processes in the system and gain accurate real-time insights.


Forget about having to store papers and run the risk of losing valuable information in filing systems. Your automation tools will provide a completely transparent trail of all the financial processes your business runs.


So, if you need to review any financial data or processes, and run an audit, all of the information is clearly available at the click of a button.


6. Speedy Approvals

Finance reports generally require some sort of approval process - which can take a long time. This could be something like a budget approval or an expense reimbursement.


The potential issue with having to approve manual processes is that it needs to be carefully reviewed by different people and passed along from one person to the next. This creates risk if one person in the chain forgets to review and pass on the document, which will put the entire approval process on hold.


By using an automated approval system, you can avoid hitting these speedbumps. This solution will make sure the process stays on track and that all necessary steps are covered.


7. Increases Productivity

By automating general, time-consuming day-to-day tasks, finance teams can boost their productivity, and get more of the high-level tasks done.


Whether you’re using automation systems for managing accounts payable, creating reports, or anything else, you can save hours of valuable time by applying automation.


This is especially important for small businesses with limited financial teams. By using automation, one person can perform the jobs of multiple people. So not only does this enhance productivity, but it can also reduce operating expenses for a business.





What To Look For In A Finance Reporting Automation Tool

Now that you have a thorough understanding of how finance reporting automation can truly benefit your business, let’s take a look at the three important questions to ask when choosing the right tool.


Is Adequate Support Provided?

When it comes to providing a value-added service, having access to satisfactory support is non-negotiable.


Make sure to check what level of support is offered when choosing your automation tool. Considering that the functioning of financial processes is crucial to a business, it is imperative that adequate support is provided so that your business is never left in a slump.


Is The Technology User-Friendly?

Ask for a demo or free trial so that you can fully understand the structure and ease of use of the technology, and whether it is the right fit for you and your finance team.


Is Training Provided?

Implementing a finance reporting automation tool can be astronomically helpful for your business practices, but only if your team is well trained and confident in using the software. That is why onboarding and training are essential factors when choosing a new platform for your business.


Check References

What have previous or current users said about the software? We live in a digital age where reviews are readily available. Check for feedback - this is key for understanding the user interface and adequate customer service.


Conclusion

The need for full transparency, instant access and insight into financial systems and reporting is ever-present.


And implementing a finance reporting automation tool can not only fulfil this requirement but also create efficiencies that will blow your operational mind.


With the input of this solution, your finance team will save time as tedious processes can be automated, you can improve financial accuracy as the risk of human error is decreased, and best of all, you can completely streamline their operations.


Financial reporting automation software is what every business needs.






24 views0 comments